A legal and regulatory battle is reshaping France’s towerco landscape, pitting incumbent tower companies against lease aggregator Valocîme. At stake are property rights, fair competition, and the future of infrastructure development in the country.
The Core Conflict
The dispute centers on land lease rights for telecom towers. Incumbent tower companies in France, Cellnex, TDF, TOTEM, Phoenix Tower International and American Tower lease the land under many of their towers. Valocîme, a disruptor, buys these lease rights and pressures towercos to sell infrastructure at "construction price." This strategy has sparked over 250 lawsuits, with courts often siding with Valocîme. In one notable case, the Court of Appeal of Aix-en-Provence allowed Valocîme to evict Cellnex from a site in La Londe-les-Maures, fining the parent company.
The French government has attempted to intervene with legislation requiring telecom operator certification for land lease acquisitions. However, the Court of Appeal deemed this move potentially unconstitutional, arguing it creates "perpetual leases" that undermine property rights and fair competition.
Impact on Infrastructure Development
The ongoing conflict has significant implications for France’s telecom infrastructure. Valocîme claims to have acquired 2,700 lease rights, with 400 leases already expired. However, its aggressive tactics—such as cutting power to 10 sites in December 2024, causing network disruptions—have drawn criticism. Meanwhile, telecom operators have resisted renting Valocîme’s infrastructure, leaving landowners without the promised rent increases.
Incumbent towercos, unable to easily relocate towers, face weakened negotiating positions. This instability threatens to slow infrastructure upgrades and expansion, particularly in rural areas where tower relocation is least feasible.
Broader Implications for the Industry
The French "telecoms war" highlights a growing tension between market disruptors and established players. Valocîme’s model, which aims to redistribute value between landowners and operators, follows similar movements elsewhere. However, its speculative tactics and legal battles raise questions about long-term sustainability.
For the telecom industry, the conflict underscores the need for clear regulatory frameworks that balance property rights, fair competition, and infrastructure development. As France navigates this complex landscape, the outcome could set a precedent for other markets grappling with similar challenges.
In the coming months, stakeholders will be watching closely to see whether the government can broker a resolution that ensures stability for operators, fair returns for landowners, and continued investment in France’s telecom infrastructure. Towercos and their investors are insistent that lease owners should not get access to tower economics merely by owning land.
VALOCÎME: In their own words.
Valocîme is first and foremost the idea of bringing new blood into a market with a few players.
These few actors are “Towercos” just like us, but Valocîme is a new model unlike our traditional Towercos competitors.
Our new model, based on healthy competition and preservation of coverage and the environment, is, simply put: offering a higher rent to the lessor and offering a 20% cheaper hosting price to mobile operators for the same location.
As stated in the site, the traditional Towerco captures about 75% of the value chain leaving only 25% for lessors and operators.
The VALOCIME towerco, due to its competitive model, will earn less margin than traditional Towercos but enough to be profitable in the very long term.
And above all by rebalancing the distribution with its lessor partners and operator clients:
– Increase the rent of lessors by around 30%.
– Reduce the hosting price of mobile telephone operators by 20%.
– Buy or build at the construction price and not at the artificial price of traditional Towercos.
